Paragon launches Energy Performance Certificate service

Paragon announces the launch of an Energy Performance Certificate (EPC) service to help its landlord customers ensure they are ready for new energy efficiency legislation.

From 1 October 2008, landlords offering property for rent will be legally required to provide tenants with an EPC. Failure to comply with the legislation could result in a £200 fine and the landlord being unable to market the property for rent until they obtain the certificate.

The service will be offered across the Group's Paragon Mortgages and Mortgage Trust brands and customers will be able to obtain an EPC at a discounted rate via a team of highly-trained Domestic Energy Assessors. As the UK's leading specialist buy-to-let lender, Paragon is well placed to understand landlords' needs and the service levels that they require. Paragon's fast, flexible and effective EPC service will ensure that landlords will be at the forefront of the legislation when it comes into force.

John Heron, Paragon's director of mortgages, says: ‘Landlords can't afford to bury their heads in the sand when it comes to EPCs - it will be law and they have to comply with it.

‘If they don't have an EPC in place by the start of the October deadline then they run the risk of not being able to let the property quickly when looking for a new tenant, and that could result in unnecessarily long void periods.'

Heron added: ‘Paragon's customers already offer a professional service to their tenants and the EPC facility will be an extension of this.'

Landlords can order their EPC by visiting paragon-epcs.co.uk or mortgagetrust-epcs.co.uk, where they can also find a downloadable guide to the EPC requirements.

EPC Q&A

What is an EPC?

An EPC tells you how energy efficient your property is on a scale of A-G, with A being the most efficient. The Certificate also tells you, on a scale of A-G, about the impact the property has on the environment. Better-rated properties should have less impact through carbon dioxide (CO2) emissions. The EPC will also make recommendations about how a property's energy efficiency can be improved.

What is the benefit to landlords?

Prospective tenants will be able to see at a glance how energy efficient and environmentally friendly the properties they are considering renting are, and will be able to make a direct comparison between those properties. If a landlord has invested in energy saving measures, the properties will perform well and stand out from the crowd. If not, he may find them harder to rent out in future.

Do I need an EPC if I have an existing tenant?

Landlords with an existing tenant will not be required to obtain an EPC until that tenant leaves and the property is re-let. However, it is recommended, especially if a landlord has a reasonably high turnover of tenants, that they don't wait until they have a vacancy but get an EPC in place before 1 October.

How long is an EPC valid for?

An EPC is valid for 10 years, except where a property is being sold and a Home Information Pack is required. Landlords holding a valid EPC will not be required to obtain a new certificate every time they re-let a property. Where improvements have been undertaken to a property the landlord may order a new EPC to reflect the improved energy efficiency of the property.

What is the penalty for not obtaining an EPC?

There is a £200 fine for non-compliance and the landlord cannot market the property until an EPC is obtained. If you are fined, you must still obtain an EPC or you could be liable for further fines.

Why is the Government implementing this?

The Government believes that nearly 50% of the UK's energy consumption arises from the way our buildings are lit, heated and used. The Government has committed to reducing carbon emissions and sees reducing energy consumption relating to buildings as a key component of that.

Do landlords have to carry out the EPC recommendations?

No, landlords are under no obligation to carry out recommendations made.